DuPont Decomposition

Why does JARO earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

14.7% = 19.3% × 0.64 × 1.19

Latest: FY2026

Profitability

Net Margin

19.3%

39.3% →19.3%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.64x

0.65x →0.64x

Revenue per ₹ of assets

Leverage

Equity Multiplier

1.19x

2.09x →1.19x

Assets funded by equity vs debt

Trend Analysis

ROE declined by 38.4 pp over 5 years. Driven by net margin declining (39.3% → 19.3%), leverage falling (2.09x → 1.19x).

Historical Decomposition

Last 5 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY20220Cr0Cr39.3%0.652.0953.1%
FY20230Cr0Cr9.5%0.692.2615.0%
FY20240Cr0Cr19.1%0.991.7232.4%
FY20250Cr0Cr20.5%0.911.6130.1%
FY20260Cr0Cr19.3%0.641.1914.7%

How to read DuPont

  • Rising ROE from margin = pricing power, operational improvement (good)
  • Rising ROE from turnover = better asset utilization (good)
  • Rising ROE from leverage = more debt, amplified risk (caution)
  • Falling ROE across all three = structural deterioration (red flag)

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.

JARO DuPont Analysis — ROE 14.7% | YieldIQ